There is room for US Dollar (USD) to test 155.55; it is unclear whether USD can break clearly above this level. In the longer run, renewed upward momentum suggests USD could rise above 155.55; it must close above this level before a move to 156.00 can be expected, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Renewed upward momentum suggests USD might rise above 155.55
24-HOUR VIEW: “Last Friday, USD dropped sharply, albeit briefly, to a low of 153.59 and then snapped back up. Yesterday, we pointed out that ‘the outlook is unclear after the sharp but short-lived swings’, and we held the view that USD ‘could trade in a range between 153.80 and 155.05’. We were incorrect, as USD rose to a high of 155.30. The advance appears to be running ahead of itself, but there is room for USD to test the major resistance at 155.55. Currently, it is unclear whether USD can break clearly above this level. Support levels are at 155.00 and 154.80.”
1-3 WEEKS VIEW: “Last Thursday (13 Nov, spot at 154.15), we highlighted that USD ‘is likely to trade with an upside bias but given that there has been no significant increase in upward momentum, any gains may be capped near 155.55’. After USD fell below our ‘strong support’ level, we highlighted yesterday (17 Nov, spot at 154.50) that ‘upward momentum appears to have eased, and for the time being, USD could trade between 153.20 and 155.05’. We did not expect USD to rise to a high of 155.30. The renewed upward momentum suggests there is a chance for USD to rise above 155.55. However, USD must close above this level before a move to 156.00 can be expected. To maintain the momentum, USD must hold above 154.40.”